this is the business briefing. i'm sally bundock. eu and chinese leaders meet to forge deeper ties, as china looks to try and counter rising protectionism from the us. and britain's prime minister is expected to pledge hundreds of millions of dollars for the aerospace sector, as the biggest air show of the year kicks off here in the uk. and on the markets the new trading week has begun on a negative note as new data showed china's economy slowed slightly in the second quarter compounded by fears of a full—scale trade war with the us. compounding eu leaders have urged china, the us and russia not to start

a trade war, saying there is still time to prevent chaos. the chinese premier is hosting an annual meeting between the eu and china in beijing, as the world's second biggest economy looks at how it can strengthen its position, amid rising trade protectionism from the us. europe's single market and china are two of the biggest trading partners in the world. eu exports totalled $230 billion last year, while china exported goods to europe worth $435 billion that's well over $1 billion a day. china has also been buying up big in europe, last year it's foreign direct investment in the continent rose 76% to $81 illion. but some in europe have been cautious of growing chinese influence. in 2016 the robotics firm kuka was bought for $5 billion — it was the biggest ever chinese takeover of a german firm. there have since been calls to make

it easier for eu states to block takeovers of firms with sensitive technology. something we have seen in the us. dr yu jie, head of china foresignt at lse ideas. shejoins me. good to see she joins me. good to see you. shejoins me. good to see you. this european— china summit comes at a time when many would argue they have been pushed together by the protectionist measures or rhetoric coming from president trump. do you think this summit will be different? it is very interesting times it could be rhetoric tired but regarding the chinese market access and production i wonder how much the

two sides can achieve. the european union have been the foremost to complain about how china was behaving. from europe? point of view the biggest demand is to see reciprocal market access when it comes to its trade with china. we will see any change on that, do you think? for what happened last week, china has already offered some sweeteners. deutsche bank allowing to have in the bank lending markets which is a huge achievement for deutsche bank. company investing in china have been welcomed by chinese companies have also become competitive domestically, together with european companies. so the chinese companies want to protect

themselves anyway. i do not know how much a union would achieve. that is a difficult scenario for the likes of angela merkel and other european leaders who were desperate for the trade with china is top european businesses are desperate to have a piece of mainland china. there is a growing sense of anxiety among european member states because china has divided the european union and it does not have much to say any more because china was buying up the 16 plus one the eastern and central european countries. do you think the actions of donald trump is going to force china to change more swiftly thanit force china to change more swiftly than it wanted to and therefore, although we are seeing some short—term pain in terms of the ongoing trade war, we may see the

outcome of the us wants and also europe, eye china changing its way. ——i be. europe, eye china changing its way. --i be. china has never really anticipated a swift change from the us and therefore it has to open up and look at it at the end of the day. thank you for coming in and sharing your expertise. we will keep you informed on how the summit goes. later today british prime minister theresa may is expected to promise extra investment for the aerospace industry. at the farnborough airshow she's expected to offer almost $400 million for several projects, including researching more environmentally friendly aircraft. the event in the south of england is the biggest air show of the year as theo leggett reports. it's the biggest international airshow of the year and it's where you will find some of the world's largest aircraft. this week, around 100,000 visitors from 100 different countries

will flock to farnborough airfield in southern england. the british government will use the show to explain its strategy for the aerospace industry after britain leaves the european union. that includes its plans for a new fighter aircraft programme. the spectre of brexit is still hanging in the air but manufacturers have broadly welcomed recent proposals to limit disruption to cross—channel trade. it does provide the basis for a sensible negotiation with our european union partners. clearly it's not the end state and there will be a variety of additional demands on both sides but i think it signals a sense of pragmatism and compromise which i think is in the best interests of our economy. meanwhile, in the market for smaller airliners, the sharks have been circling. bombardier‘s c series has been gobbled up by airbus and rechristened the a220. boeing responded by agreeing to take over embraer‘s commercial jet programme including this,

it's new e2 design. smaller aircraft are coming back into fashion and what the big boys are bargaining on is over the next 20 years there will be more demand for highly efficient regional aircraft like this one. defence companies will be busy too and there is a large delegation from the united states. president trump has been telling european countries to spend more on defence. american businesses are more than happy to sell them what they need. and 15 years after concorde made its final flight, supersonic travel is coming back on the agenda. industry giant boeing and ambitious start—up boom supersonic will be making a big noise about their rival ideas for carrying passengers faster than the speed of sound. theo leggett, bbc news, farnborough. we will be live at the airshow

tomorrow. the big figure behind me, one point a percent rise on the nikkei is actually friday's close fought japan. they are nikkei is actually friday's close foughtjapan. they are shut nikkei is actually friday's close fought japan. they are shut the date for a public holiday. elsewhere we have seen stocks slide in asia. growth in china, the world's second biggest economy, has slowed over the past three months to 6.7%. it's all as the government is trying to tackle debt and of course the ongoing trade war with the us. let's go to our asia business hub where rico hizon is following the story. tell us a little bit more about the growth figures out of china. tell us a little bit more about the growth figures out of chinam tell us a little bit more about the growth figures out of china. it was 6.7% slip up from 6.9% during the january— march quarter, also adding to the pressure in the economy, fixed asset investment growth for

the first half was a record low of 6% compared to a year ago levels. industrial also a slow rate at 6%. the effect of the first batch of ta riffs the effect of the first batch of tariffs on steel and aluminium was barely felt because it was only $3 billion which is a slow compared to china's total economy, as for the second batch, it will only apply in this week so it will have impact only this current quarter. with the current measures imposed, the first $53 billion of tariffs could shave off about a quarter of 1% in annualised gdp. in the range of $400 billion, that could reduce china's economic growth by 1% in 2019 say with all of these factors put together, it is not looking good for china's economic growth in the

second half of 2018 onwards to 2019. good to see you. now let's brief you on some other business stories: the us has turned down pleas from the eu to grant exemptions to european companies from american sanctions against iran. in a letter to european counterparts, the us secretary of state and the treasury secretary said washington wanted to exert unprecedented financial pressure on tehran. shares in the chinese tech giant zte have surged after the us lifted an export ban on the firm. the ban was imposed in april after it breached us sanctions against north korea and iran, forcing the firm to halt all major operations. zte shares rose as much as 9—percent during trade in hong kong. rolls royce has designed a propulsion system for a flying taxi, which it hopes could take to the skies as early as next decade. the firm is looking for companies to partner with.

the electric vehicle would carry four to five people, travelling at up to 400 kilometres per hour. it sounds like a hollywood movie, catching a flying taxi. let's look at the financial markets. japan is a shut today. a one—day break. this is how things are in hong kong, the night before in the us. oil has been falling and a lot of talk about pressure on oil because talk of more production and oil coming into the financial market from the likes of opec financial market from the likes of 0pec and others. i will see you soon. the rail operator govia thameslink is introducing

its third new timetable in two months. passengers on the company's lines, which include southern, thameslink and great northern, have suffered severe disruption after an overhaul of the schedule in may. 0ther rail companies cancelled services on sunday, blaming staff shortages due to the hot weather and world cup final. here's our business correspondent, joe lynam. beeping. in recent weeks, it's getting to be a familiar sight. cancelled trains and packed carriages. yet another new—ish timetable on great northern, southern and thameslink services and yet more trains cancelled. passengers are getting weary. i travelled on the day they changed the timetables, on may 20th, from cambridge and it wasjust a guessing game, to know what platform to be on.

the staff have no information. it can only improve things, to be honest. as far as i'm concerned, it's very, very poor. since the new timetables were introduced in may, the government has launched an inquiry into govia thameslink, threatened to strip it of its franchise and its ceo has resigned. but it's notjust govia where there's problems. another operator, northern, cancelled 170 services today and great western, which runs trains between london and the south—west, also cancelled more than 30 trains, blaming engineering works, the hot weather and the world cup for staff choosing not to work overtime. govia thameslink, which runs southern, thameslink and great northern trains said: transport focus, which represents commuters, said rail companies must make sure they do everything to minimise inconvenience

on the day. and to restore services, as soon as possible. the latest headlines: president trump will meet his russian counterpart, vladimir putin, later on monday. mr trump said he had low expectations of the summit, but hoped it would deliver something good. millions of people in france have been celebrating their team's victory in the football world cup. france defeated croatia four—two in the final in moscow. eritrea will reopen its embassy in neighbouring ethiopia today for the first time in 20 years. it was closed in 1998 after the two countries went to war over a border dispute. let's look at some of the stories that are making the headlines in the media across the world.

we begin with the guardian and us president donald trump, who described the european union as one of his greatest "foes" — this just hours before his very controversial summit with the russian president, putin. the ft says international companies active in iran face the threat of us sanctions within weeks, after washington rebuffed a high—level european plea to exempt crucial industries. the times leads with the senior conservativejustine greening, who has called for a second referendum on brexit. she says the prime minister's effort to keep britain